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National Assembly to Address Licensing , Funding Challenges in Nigeria’s Mining Sector, House Committee Chair

Hon. Jonathan Gbefwi, Chairman of the House Committee on Solid Minerals, has reaffirmed the National Assembly’s commitment to addressing key challenges facing Nigeria’s mining sector, especially those related to licensing consent and enforcement against illegal mining.

During an oversight visit to the Nigeria Mining Cadastre Office (NMCO) in Abuja, Hon. Gbefwi highlighted the urgent need for clearer guidelines around consent in the licensing process, a recurring source of complaints and conflicts.

“The issue of consent in our licensing process has generated numerous complaints,” he noted, adding that poorly managed consent could spark disputes, including overlapping licenses that have already caused tension in some areas. “We must ensure that consent protocols are not only clear but are rigorously enforced to avoid these overlaps.”

A recent incident involving a license in Kaduna unintentionally encroaching into Nasarawa State underscored the necessity for a stronger framework.

Hon. Gbefwi proposed placing NMCO desk officers in each state to verify land title authenticity directly with local and state land survey departments, helping prevent inter-state boundary issues and fostering collaboration.

Addressing concerns about the prevalence of illegal mining, he observed that inadequate funding limits NMCO’s enforcement capacity, despite its revenue generation of over 8 billion Naira by October 2024. “It’s alarming to see the number of licenses we issue, yet illegal mining continues to thrive,” he said, attributing this challenge to NMCO’s limited budget of only 1 billion Naira annually. Hon. Gbefwi pledged the committee’s commitment to bolstering NMCO’s budgetary support.

Furthermore, he emphasized the need for better staff incentives and working conditions to reduce corruption risks and improve productivity. Drawing from successful models like Ghana’s Minerals Commission, he advocated for NMCO to retain more of its revenue to enhance operations.

Hon. Gbefwi concluded by assuring NMCO of the committee’s advocacy for increased resources, especially in the first quarter of the next fiscal year, and announced plans for oversight visits to NMCO’s zonal offices, underlining the National Assembly’s commitment to driving Nigeria’s mining sector forward.

In response, NMCO Director-General, Mr. Simon Obadiah Nkom, expressed his appreciation for the committee’s support. He highlighted NMCO’s collaboration with agencies like the NEITI and EFCC to promote transparency and ethical practices. Nkom emphasized, “We have signed an MoU with the EFCC, DSS, NEITI, and others to ensure title holders engage in lawful activities.”

He also appealed for budgetary improvements to support NMCO’s operations, noting that a modest allocation increase could significantly impact the agency’s ability to manage its responsibilities.

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